US debt hits historic high, sparking fears of global economic fallout

Kamran Khan has warned that the United States, despite being the world’s largest economy, is now facing what could be the gravest financial crisis in its history.

In his vlog, Khan says ballooning national debt and a weakening dollar have pushed the U.S. into a debt trap with global implications.

According to data Khan cites, the U.S. national debt has reached $36.22 trillion as of June 2025. That figure is higher than the combined GDP of BRICS countries — China, India, Brazil, Russia and South Africa — which collectively stand at $32 trillion.

Khan notes that the dollar has depreciated by 10.8% in the last six months against major currencies such as the euro, pound and yen. He raises a central question: Can the U.S. continue to thrive under this mounting debt, or is it headed for collapse?

“If this debt were divided among America’s 347 million citizens, every family would owe $270,000,” Khan said. “And every newborn American starts life over $109,000 in debt.”

Khan breaks down the roots of this crisis, explaining that national debt stems primarily from the U.S. federal budget deficit — the gap between government spending and revenue. The U.S. spends heavily on social security, military operations, infrastructure, and healthcare, often borrowing through treasury bonds and bills to bridge fiscal shortfalls.

The U.S. government’s borrowing practices accelerated dramatically after the 2017 tax cuts introduced during Donald Trump’s presidency. Despite stagnant revenue, federal expenses rose due to expanded defense budgets, social programs, and large-scale infrastructure packages like the “One Big Beautiful Bill.”

From George Washington to Barack Obama, the U.S. accumulated $12 trillion in debt over 220 years. But in the past decade alone, that figure has tripled to $36.2 trillion. Of this, $29 trillion is public debt while $7 trillion is intra-governmental.

Khan says projections suggest total U.S. debt could soar to $52 trillion by 2035, with annual interest payments alone reaching $1.8 trillion.

America’s bilateral debt — money owed to other countries — currently stands at $7.4 trillion. Japan holds the largest share at $1.1 trillion, followed by the United Kingdom at $780 billion and China at $765 billion.

Khan recalled that in early 2023, the U.S. hit its debt ceiling, risking default until Congress approved further borrowing. Still, the Biden administration continued social spending while adding another $1.56 trillion in debt over the past year.

The pace of borrowing is staggering. Between January and June 2025, the U.S. borrowed $4.3 billion daily — or $180 million every hour. Interest payments now total an estimated $3 billion per day, nearing the size of Pakistan’s entire annual development budget.

Khan draws a global connection, stressing that America's debt crisis could affect economies worldwide.

“In the end, the question is not just whether the U.S. survives this crisis,” Khan says. “It’s about whether the rest of the world can afford its consequences.”